Press Release
March 30, 2010

VAT on tollways should not be imposed - Legarda

"The value added tax (VAT) on public vehicles, cargo trucks, and the use of tollways should not be imposed by the government on a people already financial burdened, " NP-NPC-LDP vice presidential candidate Loren Legarda said today.

"Isa na namang pahirap ito," she added. "And it's the result of anti-poor policies of people in government."

Starting April 1, BIR will start collecting VAT from toll-way operators such as Manila North Tollways Corp. for the North Luzon Expressway and South Luzon Tollway Corp. for the South Luzon Expressway, which will come from toll fees collected from private motor vehicles.

Malacañang backed the move, with Deputy Presidential Spokesman Gary Olivar announcing on Sunday that the government needs VAT revenues to cover the national deficit and to fund pro-poor programs.

Legarda urged the Palace to have the implementation of the tollways VAT scrapped. She noted that imposing it will only jack up fare rates and the cost of basic goods.

"How can VAT be pro-poor when it is the poor who is directly affected by it?" Legarda said.

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